ECB President Mario Draghi has kicked back a proposal from advisors to change the way sovereign debt is risk-weighted and asked them to do some more work on it, German weekly news magazine Spiegel reported. The euro zone's sovereign debt crisis has highlighted the dangers of banks buying government bonds as a theoretically safe buffer against risky investments, particularly since holders of Greek bonds took a hit in the country's bailout. The European Central Bank is due to run a series of checks on banks' balance sheets before taking up its role as the euro zone's banking supervisor in November 2014, and Spiegel quoted central bank sources as saying they were worried that having a debate about the current system of financing governments would be untimely. The ECB declined to comment on the report when contacted by Reuters.
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